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Eventual break of the Gbp0.8905.......>

EURO-STERLING
MNI (London)
EURO-STERLING: Eventual break of the Gbp0.8905 level, and the subsequent break
below Gbp0.8900, allowed rate to squeeze down to Gbp0.8883, holding just shy of
technical support at Gbp0.8882/81(76.4% Gbp0.8865-0.8936/Jul30 low). Rate saw
another challenge on the Gbp0.8883 low in early Asia before it recovered to
settle around Gbp0.8890 into Europe. Underlying tone remains bearish but focus
will be on today's BOE MPC rate announcement(25bps hike widely expected), with
accompanying press conference and Inflation Report. General view is for a dovish
hike, acknowledging Brexit risks. A break of the Gbp0.8882/81 area to expose
Gbp0.8865. Resistance GBp0.8905 ahead of Gbp0.8917.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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